AUSTIN (Nexstar) – Voters in Bexar County will decide whether or not the San Antonio Spurs get a new arena. A proposal on Tuesday’s ballot calls for hundreds of millions of tax dollars to be allocated to the NBA franchise’s $1.3 billion stadium plan.
Prop B would raise the county’s hotel occupancy tax (HOT) from 1.75% to 2%, and would use that revenue to fund a new stadium for Spurs. Revenue will also come from the province’s short-term car rental tax. The proposal would fund approximately $311 million in construction and development.
The city of San Antonio plans to contribute $489 million toward the stadium, while the Spurs have committed to covering $500 million of the stadium’s construction costs. Tottenham also promised to pay 100% of any budget overruns.
Tottenham’s new arena will be located in the city centre. The team currently plays at Frost Bank Center on the east side of San Antonio. Proponents of Prop B say the new arena would attract more development, including a sports and entertainment district, and create jobs.
Supporters of Prop B say using revenue from hotel and rental car taxes puts the tax increase on tourists and not on people who live in Bexar County. Supporters claimed that if approved, no cost would be borne by homeowners or renters, and no money would be taken from city or county budgets.
Opponents dispute the claim that the arena will be funded entirely by tourists, claiming that if revenue projections fail, pressure will be put on shifting the burden to property taxpayers. One prominent opponent of Prop B is COPS/Metro, a nonpartisan, nonprofit public advocacy group that holds that public funds should primarily serve public purposes, not the private arena.
“Independent research across the country shows that sports stadiums rarely deliver the broad economic gains promised. San Antonio deserves better priorities,” a statement on the group’s website said.
Ultimately, the decision is in the hands of voters, who will decide on November 4 whether or not to approve the proposal.